You've always articulated that SIPs are the way to invest. This is also globally accepted. However, SIP returns in equity mutual funds in the last five-seven years have been disappointing. Should an investor now need to be more proactive and try to understand the market cycle before investing?
Yes, five-year SIP returns are disappointing, as the value of all your investments has actually declined. However, sooner or later, this will change and everything will look rosy once again. But it is very difficult to time this. In a few years from now, earnings growth will be back. Even the symptoms of earnings growth being back will drive up equity prices substantially.
Also, the money that you are investing today is being invested at lower prices. Hence, even with a small spurt in earnings and equity values, your SIP returns can change dramatically. So, carry on with your investment plan unless you need your money in the next one-two years. In that case, you need to be worried about the returns and need to methodically plan your exit. But just because five-year SIP returns are not good, don't discontinue investing through an SIP or take your money back. You should consider taking your money out only if you need the money in the next one-two years.